Article

Albert Smith
Albert Smith 28 November 2019
Categories Technology

How To Scale Up A Tech Start-up Business

One question that is often asked is: “What is the magic potion for a tech start-up to succeed and develop as a business?"

The general opinion is that the success of a start-up is not only determined by the innovation it presents in the sector, but by the team of people who help in the process of acceleration or business development. The start-up is phase one, but let’s not forget after the startup is an equally important scale-up phase.

Make the tech start-up soar – using scale-up.

A tech start-up gets a lot of support; the business idea tested, and various structures and processes applied to take it from concept through to business launch. This start-up is very important; it builds a solid foundation for the fledgling business, but what happens next is equally vital.

At the present time, a good acceleration (or scale-up) program and methodology is not enough. In addition, it is necessary to really understand the business vertical in which the start-up is located: to know the needs that exist in the sector, to have extensive experience, to be up to date with market trends , to know the acceleration ecosystems and competitive flows, have a good portfolio of potential clients / companies to pilot and have a continuous market analysis, both local and external.

All this outlined under a network with strategic partners to benefit from business growth processes, in order to carry out a good escalation, and in order to find areas or markets for continued growth.

Why you need a scale-up program.

Scalability is the ability of a company to progress without losing service quality.The design of the business model is what will define whether it is scalable or not scalable. A scalable business will be one in which expenses grow linearly while revenues increase exponentially.

In the world of entrepreneurs and tech start-ups, scalability is a keyword and is always present. This element has to be consciously designed by studying the business model of your company and giving it the characteristics that will make it adapt to the market efficiently.

Scalability is a very important aspect for a tech start-up in order to attract private investors. Investors are looking for businesses that have great growth potential. An attractive business is one in which customers increase without the need to constantly refill the investment pot.

The scalability must be at the business level, that is, as the business grows the profits are equal or greater, but never lower.

Why is it so important for a business  to be scalable?

A scalable business is one that evolves, grows and expands. The greater the difference between billing and cost, the better growth prospects you will have. A very scalable business is ideal for any investor since its ability to generate profits will be enormous, while the cost of its infrastructure is much lower compared to its turnover.

Scalability represents the balance between the expenses and income of a business. The more scalable, the greater the profit margin it will have, the greater the difference between cost and billing.

Scalability can not only refer to the level of business but also to technological support. If your company is technological, it has to scale the technology. For example, a website with good technological scalability will be prepared to have one day 500 visits, and the next day, a million and continue to function normally. That is why it is important that the technology is supported by all the processes behind it.

One of the most important elements when it comes to getting a scalable business is the team. In a service company, you can pay the personnel to perform those services, but in the case of companies based on a product the equipment is essential. And not only do we refer to the stage of development and launch of the product, but in order to attract investors. A start-up that has a good team will be much more attractive to a business angel, than a company without a consolidated team.

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